Antofagasta Offers Chile Mining Stake to Marubeni

Chile’s Antofagasta has agreed to sell a 30% stake in the Antucoya copper venture to Japan’s Marubeni for $350m. The companies signed a memorandum of understanding which also commits Marubeni to cover its share of development costs in the mining venture. The MOU sets a number of conditions prior to striking a definitive deal in the first quarter of 2012. If all goes as planned, Antofagasta estimates the transaction would then close sometime during the second half of 2012. Officials at Antofagasta and Marubeni could not immediately be reached to comment further. The Antucoya copper project is expected to generate roughly 80,000 metric tons of copper cathodes a year with an estimated mine life of 20 years. The project holds proved and probable ore reserves of 642m metric tons. The announcement came as the company’s board gave the final approval to move ahead with the project’s investment. Antofagasta and Marubeni are also partners in Chile’s Minera Los Pelambres, the Esperanza copper and gold project and in the El Tesoro mine property.